The European Union has come to the conclusion that hedge funds are risky according to a recent report by Reuters. Read it here. It turns out that the United Kingdom’s Financial Services Authority (FSA) has determined that even with new regulation and monitoring, hedge funds and those that manage them, still pose a significant risk to health and well being of markets around the globe. I really don’t know what to say about this revelation by the powers that be in Europe. Talk about having their fingers on the pulse of the issues of the day!
it is true, hedge funds may be more risky then some other investment, however, that is not what is scary about this latest news coming out from across the pond. What is scary, is that people, who seem to have little or no understanding of how markets work and why are setting policy and regulation not only about how hedge funds are managed but how they are sold.
All I can say, is stay tuned, things are going to get very interesting over in Europe very soon.
You can get in on the discussion next week on the HEDGEAnswers – February 16th call. It is next Tuesday at 10 am. I hope you will join us that conversation will be lively, entertaining and thought provoking. Register today by clicking here!